tax-exempt

American  

[taks-ig-zempt] / ˈtæks ɪgˌzɛmpt /

adjective

1. not subject or liable to taxation.

   tax-exempt imports.

2. providing income that is not taxable.

   tax-exempt municipal bonds.

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noun

1. a tax-exempt security.

tax-exempt British  

adjective

1. (of an income or property) exempt from taxation

2. (of an asset) earning income that is not subject to taxation

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Etymology

Origin of tax-exempt

First recorded in 1920–25

Example Sentences

“Given the evolving market dynamics of college sports,” she wrote, “legitimate questions have been raised about whether it is time to rethink the tax-exempt regime under which college sports currently operates.”

From Salon • Apr. 5, 2026

The dissolution order from the Tokyo district court was meant to strip the church of its tax-exempt status and require it to liquidate its assets, but still allow it to operate in Japan.

From BBC • Mar. 4, 2026

The category weightings for the five-year results were general equity, 37.7%; mixed asset, 21.8%; world equity, 16.7%; taxable bond, 20%; and tax-exempt bond, 3.8%.

From Barron's • Feb. 26, 2026

The protocol foundation was created as a tax-exempt charity during Republican Gov. Arnold Schwarzenegger’s administration in 2004.

From Los Angeles Times • Feb. 14, 2026

The idle man possessing capital, much or little, if he is so constituted that his conscience permits him to evade his share of monetary sacrifice, can put his money into tax-exempt securities.

From War Taxation Some Comments and Letters by Kahn, Otto Hermann